The world of virtual assets is attracting more and more users. Traders actively earn on the market’s volatility; inverters buy coins to make a profit, and developers consistently profit from the fact that many people use their products. Most likely, you also thought about make a cryptocurrency. It is fantastic and will allow you to earn additional income. Therefore, let’s figure out together what is needed to make personal cryptocurrency, how long it takes, and how much money will be invested.
What you need to know before creating your own cryptocurrency
The first thing to know is that everyone can do cryptocurrency creation. Even if you will not monetize the project or present your asset to the general public, it will be nice to have a personal token.
As absurd as it may sound, creating your own cryptocurrency is the easiest part of the process. Yes, this requires special knowledge and skills. But keeping an asset running, introducing new features, and maintaining interested users is much more difficult.
Before proceeding with the cryptocurrency development process, it is worth deciding on the type of asset:
The coins operate on their own blockchains and benefit from the share of all elements. Tokens are created based on an already existing platform and cannot affect other parts. It is also worth understanding that you can buy tokens for coins, but you cannot carry out the operation in the opposite direction.
What to look for before starting to create your own cryptocurrency
Before developing a virtual asset, it is worth evaluating its usefulness. These are the functions and features of cryptocurrency. It should be understood that different coins have different processes. Some can access service keys, and some are used only in financial transactions.
Do not lose sight of cryptocurrency tokenization. If users are not interested in a virtual asset, it will simply not be used. Accordingly, you will not receive the expected profit. Plus, all the effort and time will be wasted.
Compliance with laws is another crucial aspect. There are countries in which cryptocurrency is adopted at the legislative level and is considered a legal financial instrument. But there are also regions in which it is prohibited. Therefore, it is worth carefully studying all the laws.
How to create your own cryptocurrency
Let’s get down to the question of how to make your own cryptocurrency. There are three ways to do this:
- create a blockchain from scratch and run a cryptocurrency on it;
- change the blockchain code that already exists;
- use existing blockchain for building your digital currency.
In the first case, from concept to coin process will take quite a long time. Writing your own code for the blockchain and creating a cryptocurrency based on it will be necessary. This option suits those who want to create an innovative project for many consumers.
Since all blockchains are open source, you can use them as the basis for your system. This method is a little easier since you do not need to create a design from scratch. But you still need technical knowledge to initiating your own cryptocurrency.
Regardless of how you create a blockchain: on your own or based on existing code, you must conduct a full audit before you mint cryptocurrency. It is a mandatory step that will help identify the platform’s weaknesses and avoid future problems.
And let’s move on to the third option. In this case, you will receive not a coin but a token. Most blockchains allow you to host someone else’s cryptocurrency. The system automatically determines the received token as virtual money, so you can safely use it for your own purposes. The first thing to do: choose a blockchain. Then, it would be best to create a token of your cryptocurrency. At this stage, specify all the main functions and parameters of the virtual asset. And you can start issuing cryptocurrency.
What affects the cost of developing a cryptocurrency
Creating a custom cryptocurrency requires special knowledge that not everyone has. Therefore, it is much easier to turn to specialists who will do everything for you. Logically, the question arises: how much does it cost? The price of developing a cryptocurrency depends on many factors:
- type of project (on its own blockchain or not);
- asset characteristics;
It is logical that creating a blockchain and cryptocurrency from scratch will cost more than developing a token. But you will get a more flexible and secure solution in the first option. At the same time, it will not be necessary to depend on the chosen platform and meet the specified requirements.
Remember that you need to constantly monitor the platform’s work. Do not think the blockchain and cryptocurrency will work perfectly the same way as on the first day of launch. As the workload increases, productivity will increase. Plus, you must constantly develop new features to attract new users. These same factors also affect cryptocurrency prices live on the market.
How long does it take to create a cryptocurrency?
It is pretty challenging to say how long it will take to create a cryptocurrency. It all depends on the project’s complexity, whether it is necessary to develop a blockchain, and what functions the coin will have. Steps to launch a personal cryptocurrency can take up to six months.
Using automatic tools will significantly speed up the process of creating a cryptocurrency. But it is essential to understand that all the same, it will not reduce this time to one week.
When creating your own cryptocurrency, you must understand that this is not only writing code and architecture. It is also the launch of the project, as well as marketing. All this also takes a lot of time. Enough attention should also be paid to preparing for development and creating a plan.
Why you need your own cryptocurrency
As it is already clear, creating your own cryptocurrency is somewhat complex and detailed work. Yes, you can create a virtual asset to pass a few hours. But most often, cryptocurrency is designed to:
- ensure the anonymity of financial transactions;
- reduce the chance of fraud;
- minimize transaction costs;
- be able to accept payments.
Given financial companies do not control that cryptocurrency, they provide more flexibility. It is valid for both users and businesses. The integration of payment using virtual currency allows the company to accept payments at any time, regardless of the bank’s work schedule. Plus, it will enable you to accept payments from other countries. That contributes to developing the international market, strengthening partnerships, and expanding the market of potential customers.